The median manager in InterSec Research's global fixed-income universe outperformed the Salomon World Government Bond Index by 50 basis points in the third quarter. During that period, InterSec's median manager produced a 1.8% return; Salomon's WGB index, 1.3%.
InterSec said managers remained overweighted to the U.S. dollar and substantially underweighted to the yen and Japanese bond market.
New Providence Capital Management introduced a new mutual fund, the Capital Growth Fund, which will emulate the strategy used to manage part of John Templeton's offshore fund, Best Investments International.
The strategy is growth-oriented, and uses a concentrated large-cap style. The goal is to identify companies that will provide high capital appreciation through rapid earnings growth, compounded by price-to-book earnings valuation expansion.
John K. Donaldson, Shannon D. Coogle and Kyle A. Tomlinson are the fund's managers.
Investors reacted to market volatility by pumping less new cash into the stock and bond markets through mutual funds, according to preliminary estimates by the Investment Company Institute.
Net cash flow to stock mutual funds dropped 18% to an estimated $21 billion in October, compared to an actual figure of $29.4 billion in September, which was the third largest month of inflow this year.
Bond and money market funds also showed declines in inflows last month. The ICI estimated that such funds had inflows of $3 billion, a 17% decline from the actual figure of $3.6 billion in September.